U.Fund College Investing Plan

General Information

U.Fund College Investing Plan

Massachusetts' U.Fund College Investing Plan, a Fidelity-managed 529 plan follows the same approach as other Fidelity plans in Arizona, Delaware and New Hampshire. It features three age-based options; one using Fidelity mutual funds; one using Fidelity index mutual funds; and a third multi-firm option with portfolios that invest in funds offered by several different companies. The plans also offer 11 static options, and one option that invests in an interest-bearing deposit account.

Our Ratingix

An excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.

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4 of 5

Fee Scoreix

The fee score is derived from the analysis of costs done as part of Savingforcollege.com's 5-Cap Rating. This analysis compares total average asset-based expenses of the plan to other 529 savings plans. See the methodology for more information.

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4 of 5

Performanceix

The performance score is derived from the analysis of performance as part of Savingforcollege.com’s 5-Cap Rating. See the methodology for more information.

Ratings & Rankings

Our overall rating for MA residents

This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.

Our overall rating for non-residents

This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.

Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories.

3.78of 5

In Savingforcollege.com's latest quarterly rankings, this plan ranked in the top 10 for 1-year, 3-year, 5-year and/or 10-year performance.

Each plan's performance score is developed directly from Savingforcollege.com's Quarterly 529 Performance Rankings. A 529 savings plan must have at least one year of performance history before they will be assigned a 5-cap rating. For those plans that are not part of our quarterly performance rankings, such as plans offering a single set of bank-based investment options, we assign a performance score by evaluating the returns currently available on similar types of investments outside of 529 plans.

4.15of 5

In Savingforcollege.com's latest quarterly rankings, this plan ranked in the top 10 for 1-year, 3-year, 5-year and/or 10-year performance.

We compare the total average asset-based expense ratio of the plan to other 529 savings plans. We also compare the asset-based expense attributable to program manager and administrator fees, because these represent the additional costs of using the 529 plan over and above the costs of investing directly in the plan's underlying investments. We also adjust for plans that charge on enrollment fee and/or annual account management fee. For advisor-sold plans, we compare the sales loads on the "A" share class. And we also penalize plans offering a menu of investment options that you can find in a different 529 plan but at a lower cost.

4.62of 5

In Savingforcollege.com's latest quarterly rankings, this plan ranked in the top 10 for 1-year, 3-year, 5-year and/or 10-year performance.

How "state-of-the-art" is this 529 plan? What extra features does it provide for the benefit of its participants? Among the features we look for are investment menus covering the full range of investor risk; the ability of the plan to hire and fire investment managers or replace their underlying mutual funds; creditor protection under the sponsoring state's laws; FDIC-insured options; purchase rewards programs; other participant perks; and minimum and maximum contribution restrictions.

3.90of 5

In Savingforcollege.com's latest quarterly rankings, this plan ranked in the top 10 for 1-year, 3-year, 5-year and/or 10-year performance.

No one likes unpleasant surprises, and here we look for the warning signs. We assign a rating to the 529 plans based on many considerations including industry experience of the outside program managers; plan popularity; risk of plan upheaval; quality of program disclosures and other materials; state due diligence practices; investment reporting; flexibility to make account changes; withdrawal restrictions; and rollover procedures.

0.30

In Savingforcollege.com's latest quarterly rankings, this plan ranked in the top 10 for 1-year, 3-year, 5-year and/or 10-year performance.

The Resident 5-Cap Rating may be higher than the Non-Resident 5-Cap Rating if the 529 plan or the state offering it provides special benefits to residents of the state. These benefits might consist of a state tax deduction or credit for contributions to the plan that are not available for contributions to an out-of-state 529 plan; a matching contribution program; a break on fees and expenses; an advantage in computing eligibility for state-funded financial aid programs; or any other potentially valuable advantage.

Eligibility

State residency requirements:

Who can be a participant/owner in the program?

Significant time or age restrictions imposed by the program:

Did you know?

MA residents can claim a tax deduction for contributions to a MA 529 plan.

Contributions are deductible in computing state taxable income

529 plan contributions grow tax-free.

Withdrawals are tax-free when used to pay for qualified higher education expenses.

You can contribute as much as you want, as often as you want.

The key is to get started. Enroll today by completing a quick form online.

Helping families save for college since 1999

Savingforcollege.com is an unbiased, independent resource for parents and financial professionals, providing them with information and tools to understand the benefits of 529 college savings plans and how to meet the challenge of increasing college costs.

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